Africa leads globally in gender inclusion in private capital

AVCA report reveals Africa leads globally on gender inclusion in private capital, yet women remain underrepresented in portfolio company leadership

Africa is leading global benchmarks for gender representation in private capital firms, according to a new report by the African Private Capital Association (AVCA), though gaps persist in female leadership within portfolio companies.

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The Gender Diversity in African Private Capital report, covering 218 private capital investors, 3,099 employees, and 1,972 portfolio companies, shows that women make up 38% of investment professionals and 33% of investment committee members across African firms. These figures exceed global averages of 35% and 12% respectively.

Women also represent 44% of the workforce and 32% of board members in African private capital firms.

However, the report highlights a decline in gender representation at larger firms.

Smaller firms with fewer than five employees report 50% female representation on investment teams and 44% on investment committees, while firms managing over US$1 billion show only 29% and 19% respectively.

The study warns that this imbalance could influence the flow of funding on the continent, as larger firms typically deploy the most capital.

Despite progress within funds, female leadership in portfolio companies remains low. Only 5% of African private capital-backed companies are founded by women, and just 11% are led by female CEOs.

The report notes that where women do lead, companies perform strongly, employing 48% women on average and reporting 50% revenue growth from 2023 to 2024.

Mixed-gender founding teams recorded 46% female employment and 40% revenue growth, suggesting that gender-diverse leadership correlates with strong business outcomes.

Abi Mustapha-Maduakor, AVCA CEO, said, “Africa has one of the strongest foundations globally for gender diversity in private capital. But representation alone is not enough. We must ensure that diverse leadership translates into equitable access to capital for women founders and executives.”

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AVCA, the pan-African industry body for private capital, continues to champion inclusive investment practices across the continent, aiming to build a more competitive and resilient investment ecosystem.

David Okere